5 4 SAPiensdfsdfce Be UserDay2012 Ford Deloitte

8/13/2019 5 4 SAPiensdfsdfce Be UserDay2012 Ford Deloitte

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Your logo

Warehouse Management at Ford withS P EWM

Maryan Jacek - Ford Motor Company

Philippe Bouchot - Deloitte

SAPience.be User Day 2012

1


2/15

Your logoAgenda

Introducing Ford Motor Company & Deloitte

Why SAP Extended Warehouse Management

Scope & Implementation Approach

Challenges

Lessons Learned

Business Benefits using SAP Extended Warehouse Management

Next Step for EWM at Ford

Q&A

SAPience.be User Day 2012 2


3/15


4/15

Your logoIntroducing Ford


Dealers /RetailersSuppliers

Packagers

Warehouses Consumers

Purchasing &

SCM

Warehouse

Operations

Inbound

Transportation

Outbound

Transportation

Service Parts

Release

PS&L - 5 Key

Functions

Key Figures

2.840 suppliers

2.808 ship-to addresses

227.000 parts

21+ European markets

86 other countries

8 parts depots in Europe

130.000 order lines/day

240 outbound truck /day

62.500 inbound trucks / year65.000 outbound trucks / year

UKDaventry

166.000 m

115.000 parts

Germany Cologne

120.000 m

135.000 parts

Spain Valencia

39.000 m

83.000 parts


5/15

Your logoWhy SAP Extended Warehouse Management


Alliance to develop a ServiceParts Management Solution

Intellectual Property

Know-how

Capability

Scalability

SAP ERPEnterprise Resources Planning

SAP CRMCustomer Relationship Management

SAP SCMSupply Chain Management

SAP SPPService

Parts

Planning

SAP EWMExtended

Warehouse

Management

SAP SPM SolutionNovember 2001

Ford Motor Company &

Caterpillar starts a

contractual alliance aiming

to build a new Service parts

Management solution

January 2003

Deloitte joins the

program as system

integrator

July 2002

SAP is selected to co-

develop the solution

SAP EWM

SAP Extended Warehouse Management as part of the new SPM Solution to cover specific warehousing business requirements

High Volumes

Complex Multi-Step Processes

Specific functionalities (Slotting, Rearrangement, )

EWM becoming the cross-industry standard Warehouse Management Solution from SAP


6/15

Your logoFord Warehouse in France


Key Figures

36.000 m2

32.000 materials

Carousel (40% of the warehouse materials)

Inbound: 800 Lines (10 Trucks)

Outbound: 15.000 Lines (20 Trucks)

150 workers, 1 shift

320 dealers served

ISO 14001

Systems to be replaced by SAP EWM

PORTS: receiving and putaway

S&R: reserve stock and replenishment

SCRAP: scrapping

CYCLE COUNT: counting

MOSAIC: lost and found

GOLIAT: picking, packing and shipping operations

Introduction of Radio Frequency


7/15

Your logoFunctional Scope


Inbound Processing Storage and Operations Outbound Processing

CoreW

arehouseOperationsand

InventoryManagement

Receive ASN data

ASN Validation & Correction

Transporation Unit Arrival

Manage Transportation Unit

Goods Receipt

Putaway Bin determination

Unload Transportation Unit

Internal Routing

Slotting

Deconsolidation

Putaway

Returns / Reverse Logistics

Rearrangement Order deployment

Inventory Counts

Replenishment

Freight Order Management

Route Determination

Wave Management

Picking Bin Determination

Warehouse Order Creation

Work Assignment

Picking

Packing

Staging

Loading & Goods Issue

Kit-to order

Transportation Cross Docking

Picking GR/ Push Deployment

Yard Management

Packaging Specification

GTS Integration

EH&S Integration

Integration to QIE

RF support for all exec.processes

Batch Management

Material Flow System

Serial Numbers

Cross

Processes

Supporting

Functions

Goods Receipt - Optimization

Kit-to stock

Manual outbound deliveries

RFID Enablement

Warehouse Cockpit

eSOA enablement

Catch Weight

Labour Management

Production Supply

Opportunistic Cross Docking

Merchandise Distr. X-Docking

Task Interleaving

Execution Constraint

Semi-System-Guided work

Graphical Warehouse Layout

Integration to Transp. Processes Claims & Returns

SAP SCM-EWM 5.0

SAP SCM-EWM 5.1

SAP SCM-EWM 7.0

SAP SCM-EWM 7.0 EP1

Ford France

EWM Scope

Ford Europe

EWM Scope


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Your logoImplementation Approach


Global Template ApproachGlobal blueprint

Global prototyping80 % commonality

Documen-tation

Structures

and settings

Globalcustomer

developments

Organiza-

tional structure

Master datadocuments

Country

versions

Localdevelop-

ments

Global and inte-

grated processes

Localprocesses

Global

Template Regional/Local

Requirements

Documen-tation

Structures

and settings

Globalcustomer

developments

Organiza-

tional structure

Master datadocuments

Country

versions

Localdevelop-

ments

Global and inte-

grated processes

Localprocesses

Global

Template Regional/Local

Requirements

Ford France Implementation Strategy

Inbound Go-Live (big bang)

Unloading, Quality Management, Putaway to primary bins

Outbound Go-Live by Zone split in 3 phases

Outbound & Internal processes (Waving, Picking, Shipping, Physical Inventory,

Replenishment, )

Approach by phase/zone

Define processes, areas and volumes to reduce risks and impact on the operations

Learn from each phase

Phase Area % Shipping Lines % Materials Stored

Inbound

Outbound 1 Carrousel 28 % 41 %

Outbound 2

Pilferable

2 % 2 %

Large Parts

Engines

Pack. Mat

Outbound 3Whse B 11 % 10 %

Whse A 59 % 47 %

Warehouse Structure


9/15

Your logoChallenges


First Ford warehouse worldwide

Business

Process harmonisation from Global Template

Introduction of RF scanners

Change Management

Ship Orders from two different systems (Implementation Strategy)

People

IT

Performance

Upgrade to 5.1

Interface to automated warehouse system (Carousel)

Temporary Interfaces (Implementation Strategy)


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Your logoLessons Learned


Involve key users in the project team as soon as possible Practical training

Go for phased go-live approach limits impact & risks

Privilege SAP EWM standard in process designDo not hesitate to

challenge existing processes

Transportation PlanningFord Specific Development

Transportation Planning driving the outbound process

Daily deliveries assignment to trucks

Done by external Transportation Planner

Option 1

Keep existing process

Develop Ford specific

Transportation Planning

Option 2

Fix Transportation Planning

SAP Standard RouteDetermination

IT Benefits

SAP Support

Reduce Development efforts

Reduce Testing efforts

Business Benefits

Controlled flexibility

Reduced change on operations

Educate People

Prefered Option 10 months after Go Live

Change to SAP Standard


12/15

Your logoBusiness benefits using SAP Extended

Warehouse Management


On the shopfloor

Improve Tracking & Monitoring

Real time information at any stage of the process via the Monitor

Detailed shipping box information

Improved communication with customers

Increase Quality with RF confirmation all processes

Picking

Same picking performance although RF scanning has been introduced

Reduced picking waiting time with new Replenishment process Same picking denial rate although Inventory has been reduced by 20 %

Improved picking error rate (0,16 0,12)

Inventory Management (integration with SAP Service Parts Planning)

Reduced Inventory by 20 %

Reduced Obsolescence and Scrapping by 10 % (Ford of Europe)

Increased Fill rate (+ 0,5 97%)

Continuous Improvment using SAP Extended Warehouse Management

Information availability & accessibility for analysis

Flexibility in standard processes - Wide range of parameters & settings (Customizing and Application)

Improvments implementation done internally (New Transportation Planning & Waving in 2010)


13/15

Your logoNext Step for EWM at Ford


EWM Implementation in Daventry UK - Ongoing

Live Inbound

Live Outbound for 50 % of the shipping volume

Final Outbound Go Live in July

Upgrade to EWM 7.0 EP2

Implementation in Germany & Spain

Voice Picking in France

GlobalTemplate

Central European Planning

Whse FR

Whse UK

Whse GE

Whse SP

Other Whse

Com FR

Com UK

Com GE

Com SP

Other Com

Ford BTR Europe Rollout Plan

Planning

Warehousing

Commercial

SAP ERPEnterprise Resources Planning

SAP CRMCustomer Relationship Management

SAP SCMSupply Chain Management

SAP SPPService

Parts

Planning

SAP EWMExtended

Warehouse

Management

SAP SPM Solution


14/15

Your logoQ&A


Questions ?


15/15

Thank you!

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Documents

5 4 SAPiensdfsdfce Be UserDay2012 Ford Deloitte